What Happened With Multichain
Jun 1, 2023
The Multichain cross-chain bridge, previously known as Anyswap, has recently encountered significant challenges that have caused disruptions in its operations. Users have experienced prolonged transaction delays, leading to frustration and concerns about the safety of their funds.
Additionally, the suspension of token deposits by Binance and the apparent loss of contact with Multichain's CEO have added to the growing uncertainty surrounding the project. This article examines the series of events and their implications for the Multichain bridge.
Transaction Backlogs and User Impatience
Users of the Multichain bridge have reported transactions being stuck since Sunday, causing growing impatience among the community. The delay has affected various networks, including Ethereum, Binance Smart Chain, and Polygon zkEVM.
Concerns were raised about the functionality of the bridging service on one of Multichain's routers, which impacted the routing of asset transfers. The team has reassured users that their funds are safe and that efforts are underway to resolve the issue.
Multichain token prices are dropping.
Binance's Temporary Suspension of Deposits
Due to the extended transaction delays on Multichain, Binance, the largest cryptocurrency exchange, decided to suspend the deposits of ten tokens bridged to Binance Chain, Ethereum, Avalanche, and Fantom.
This move aimed to prevent further complications arising from the ongoing issues with the Multichain bridge. The suspension underscored the severity of the situation and added to the concerns surrounding Multichain's functionality.
Speculations of Arrests and Asset Control
Rumors emerged regarding the arrest of Multichain team members by Chinese authorities and the alleged control of a wallet containing substantial funds. The details surrounding these rumors remain unclear, causing further anxiety within the community.
Binance's decision to suspend withdrawals for certain tokens linked to Multichain was a direct response to these speculations, highlighting the need for clarity from the Multichain team.
Impact on Fantom and Other Networks
Multichain's issues have reverberated throughout the crypto ecosystem, with Fantom being particularly affected. Research suggests that a significant portion of Fantom's assets, including a substantial portion of its stablecoin market cap, is issued through Multichain.
Concerns over the stability and reliability of the bridge prompted the Fantom team to withdraw MULTI tokens from SushiSwap. The situation has created a ripple effect, with investors and users expressing alarm over the implications for their assets.
Source: The Block
Leadership Uncertainty and Server Access
Multichain's struggles extend to the protocol level, as the team has encountered difficulties accessing necessary servers due to the inability to contact CEO Zhaojun.
The lack of communication with the CEO has hampered the team's efforts to address the ongoing issues and maintain the protocol effectively. The loss of access to servers has disrupted the network of nodes within Multichain, affecting cross-chain services for various blockchains.
The Multichain bridge has faced a series of challenges that have had far-reaching implications for users, partner platforms, and the overall stability of the project.
Transaction delays, suspensions of deposits, leadership uncertainties, and server access issues have shaken confidence in the Multichain ecosystem.
As the community eagerly awaits resolution and further updates from the Multichain team, the importance of robust infrastructure and effective communication within decentralized projects becomes increasingly evident.